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Higher Education and Financial Responsibility: What to Expect

Posted on February 27, 2025 by Anthony

Embarking on higher education is a significant milestone that offers numerous opportunities for personal and professional growth. However, it also brings forth financial responsibilities that require careful consideration and planning. 

Understanding the financial landscape of higher education is crucial for students aiming to manage their finances effectively and minimize debt.

Understanding Student Debt: A Comprehensive Overview

Pursuing a college degree often necessitates taking on student loans, which can lead to substantial debt upon graduation. In the United States, student loan debt has reached alarming levels, with borrowers collectively owing over $1.7 trillion as of 2025. The average student loan debt per borrower stands at approximately $37,056, highlighting the importance of understanding the implications of borrowing for education.

Student loans generally fall into two categories: federal and private. Federal loans, funded by the government, often come with advantages like fixed interest rates and income-driven repayment options. In contrast, private loans are issued by private lenders and may feature variable interest rates with less flexible repayment terms.

Students need to comprehend the terms and conditions of any loan they consider, including interest rates, repayment schedules, and potential fees.

To gain a deeper understanding of student debt, repayment options, and financial planning, students can learn more about student debt in detail by visiting https://www.sofi.com/student-debt-guide/. Taking the time to research financial aid opportunities and alternative funding sources can significantly impact a student’s long-term financial health.

Budgeting and Financial Planning During College

Effective budgeting is a cornerstone of financial responsibility for college students. Creating a realistic budget involves tracking income sources, such as financial aid, part-time job earnings, and parental support, against expenses like tuition, housing, food, transportation, and personal items. By maintaining a balanced budget, students can avoid unnecessary debt and develop healthy financial habits.

Utilizing budgeting tools and apps can simplify the process of managing finances. These tools help students monitor their spending, set financial goals, and receive alerts when they approach their spending limits. Regularly reviewing and adjusting the budget ensures that it remains aligned with changing financial circumstances.

Building an emergency fund is another critical aspect of financial planning. Setting aside funds for unexpected expenses, such as medical emergencies or car repairs, can prevent the need to rely on high-interest credit cards or additional loans. Even a modest emergency fund can provide a financial safety net and contribute to long-term financial stability.

Students should also be mindful of discretionary spending. Limiting expenses on non-essential items, such as dining out, entertainment, and luxury purchases, can free up resources for essential needs and savings. Seeking out student discounts, buying used textbooks, and utilizing campus resources can further reduce costs.

Managing Credit and Avoiding Common Pitfalls

Maintaining strong credit is essential for future financial goals, including renting an apartment, buying a car, or securing lower interest rates on loans. Students can build credit by using a credit card responsibly, making sure to pay off the balance in full each month to prevent interest charges and debt buildup.

It’s important to understand the factors that influence credit scores, including payment history, credit utilization, length of credit history, and types of credit used. Regularly monitoring credit reports can help identify errors or fraudulent activity early, allowing for prompt resolution.

Avoiding common financial pitfalls is essential for maintaining financial health. One such pitfall is lifestyle inflation, where increased income leads to increased spending. By keeping expenses consistent even as income grows, students can allocate more funds toward savings and debt repayment. Another common mistake is neglecting to plan for large, infrequent expenses, such as car insurance premiums or holiday gifts. Including these items in the budget can prevent financial strain when they arise.

Additionally, students should be cautious about co-signing loans or credit agreements. Co-signing makes the individual equally responsible for the debt, and any missed payments can negatively impact their credit score. It’s crucial to fully understand the responsibilities and risks associated with co-signing before agreeing to it.

Planning for Post-Graduation Financial Obligations

As graduation approaches, it’s important for students to prepare for the financial responsibilities that come with transitioning into the workforce. This includes understanding the terms of student loan repayment, such as the start date, monthly payment amount, and available repayment plans. Federal loans often offer various repayment options, including standard, graduated, and income-driven plans, which can be tailored to fit different financial situations.

Creating a post-graduation budget that accounts for new expenses, such as rent, utilities, transportation, and professional attire, is essential. This budget should also include allocations for student loan repayments, savings, and retirement contributions. Starting to save for retirement early can significantly impact long-term financial security due to the benefits of compound interest.

Exploring employer benefits, such as retirement plans with employer matching, health insurance, and professional development opportunities, can enhance financial well-being. Taking full advantage of these benefits can provide substantial value beyond the base salary.

Networking and continuous skill development can also lead to career advancement and increased earning potential. Investing time in building professional relationships and acquiring new competencies can open doors to opportunities that enhance financial stability.

The Long-Term Impact of Student Loan Debt on Financial Stability

Student loan debt does not just affect borrowers in the short term—it has long-lasting consequences on financial stability. Graduates carrying significant loan balances may find it challenging to achieve major financial milestones, such as purchasing a home, starting a business, or investing for retirement. The obligation to make monthly loan payments can limit discretionary income, making it difficult to build savings or establish a financial safety net.

One of the key concerns for borrowers is how student loan debt influences credit scores. Late or missed payments can significantly impact credit ratings, making it harder to qualify for favorable interest rates on mortgages, auto loans, or credit cards. Additionally, high debt-to-income ratios can be a barrier when applying for new lines of credit.

To mitigate the financial burden, many borrowers explore repayment strategies such as refinancing, consolidation, or income-driven repayment plans. These options can help lower monthly payments, but they may extend the repayment period and increase the overall interest paid. 

For long-term financial success, borrowers should prioritize making consistent payments, minimizing unnecessary expenses, and gradually increasing savings to create financial security despite student loan obligations.

All in all, navigating the financial responsibilities associated with higher education requires careful planning, disciplined budgeting, and informed decision-making. By understanding student debt, implementing effective financial strategies during college, managing credit wisely, and preparing for post-graduation obligations, students can build a strong foundation for long-term financial health.

Gary Canter’s February College Guy Rant

Posted on February 10, 2024 by Gary Canter

Hey Seniors – greetings from the College Guy!

Man oh man time flies, doesn’t it? Winter’s grip has loosened here in Maine (well to be honest – it never really tightened) and those of you who applied Early Decision and Early Action have heard from your colleges by now. For those who are still waiting to hear from the colleges they applied to regular decision, hang tough. The most selective ones won’t spill the beans and tell you what’s up till mid-to-late march.

Here’s a chock-full-‘o-info College Guy Rant. Some of the stuff contained herein just may be of use to you and your folks, so take some time and read through it carefully…

I normally do not send out this till March, but given how the College Application landscape has changed, and the vast majority of students I work with have applied to many colleges using one of the Early plans, I think it’s appropriate to send this now.

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Parents: the FAFSA, bugs and all, needs to be submitted now if you want consideration for need based financial aid. If you’re not sure if you qualify I encourage you to apply. You can also feel free to give me a holler (that’s why I”m here, remember?) to discuss. You also need to submit the CSS PROFILE to the colleges your student has applied to which require it.

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Here’s an old Boston Globe article that will have meaning to those of you who have not gotten the news you’d hoped for. If you’ve had a rejection (or several), read it.

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Now lemme give you my “Chopped Liver” speech, which is what you’re gonna get from me when I find out that you’ve received decisions from your colleges without letting me know.

Many of you have been dutiful correspondents and have shared the good (and at times not-so-good) news with me, for which I’m appreciative. This is for the rest of you.

It goes like this: either you call me or I call you, or we run in to one another in the Old Port or Deering Neighborhood (that’s where I live) and I say something pithy like:

“So, what’s new?”

And you reply: “Well, I’m trying to decide between the acceptances I’ve gotten from Bard and Bates, but you know I was wait listed at Barnard and rejected at Brown, and also Beloit just offered me $26,000/year to go there, so I just don’t know what to do!”

“When did you hear all this?” sez I.

“Oh, I’ve known for a couple of weeks!” you reply.

…and I say something sparkly like: “Well, uh, duh, that’s great, like, were you planning on telling me? WHAT AM I, CHOPPED LIVER????!!!!!!!!!!!!!!!!!!!!!?????!? !!!!!!!!!??????!!!!?!?!?!?!?!?!?!?!?!?!?!?”

So moral of the story here is to PLEASE LET ME KNOW WHEN YOU HEAR FROM YOUR SCHOOLS: good, bad or wait-list. I’d really appreciate it cause it helps me keep the pulse on what schools are up to from year to year, y’know what I mean?

And as an added incentive (not that you should need one), I’ve got a suggestion for things you can do if you get wait listed. Briefly, it’s an attempt to appeal the decision (without begging or getting all undignified), to make sure they didn’t mix you up with someone else, to let them know you’re still interested and to score some extra points toward them potentially taking you off the wait list and offering you an acceptance down the road.

Does that happen often? To be honest, no. But over the years I’ve seen more than a few qualified applicants successfully come off a wait-list after showing the school in question some love, desire and hustle. If you should get wait listed (or if you were deferred from early decision or early action) give me a holler and ask me about the “waiting list appeal”. You may still have some moves to make.

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Now for those of you who haven’t yet heard from some of your schools don’t get all nervous. Take a deep breath and….relax. The most selective colleges like to take their sweet time, and they’ve been known to keep you in suspense till the middle or even the end of March to send out their decisions. So take a chill pill and keep the waiting game going…Concentrate on something else, like the upcoming baseball season. Um, or your physics homework.

It should go without saying (though I’ll say it here anyway) that if you haven’t heard from a college you’ve applied to and you never received confirmation from them that they received your application, you need to call that school and ask what’s up! Sometime things get lost or mis-handled, and you don’t want to find out in May that your folder got wedged between file drawers or your application got mislabeled and lost in cyberspace.

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THINGS TO DO WHEN YOU’RE ACCEPTED BY A SCHOOL

When you do get a letter of acceptance, you should follow a standard protocol something like the following:

1. Feel good about yourself, say “hip hip hooray”

2. Read the letter carefully, take note of grants and scholarship awards, invitations to attend accepted student programs, and requests for deposits (check out what I have to say about this further on in the rant).

3. Let your guidance counselor and me know.

4. Feel good about yourself again, say “hip hip hooray” again

5. Call me old fashioned, but I think it’s a good thing to write a letter (or email) to the person who signed the admissions letter (usually the Dean of Admissions). Be gracious and grateful – ESPECIALLY IF THEY OFFERED YOU MONEY!!! – and let them know how excited you are. Then assure them that although you’re still waiting to hear from another school or two, you will be getting back to them very soon to further explore their offer of acceptance.

(NOTA BENE: all schools MUST give you till April 30th before non-refundable deposits are due and you make your final decisions. No rush here – don’t let yourself feel pressured)

6. If you’ve been in close contact with coaches, professors, other “pen pal” types at the schools which have accepted you, let them know the good news as well.

7. When you get accepted by your safety schools do the same thing (it’s good to be nice, and one never knows) and as you thank them you might delicately ask if they have moolah for you.

8. Continue to feel good about yourself, lord it over younger siblings, particularly the annoying ones, and remind your parents that they won’t have you around much longer so now’s the time for them to ply you with movie tickets, nice gifts and later curfews. Try saying “hip hip hooray” within earshot of them – they’re bound to be moved!

9. PARENTS TAKE NOTE: Make sure your financial aid applications have been received by each school and you’ve responded to any additional requests for information they may have made. Oftentimes these requests are in your students’ on line “portal” at the college’s web site, so make sure your student is properly registered at each of her schools and is checking there often and carefully. Follow directions and call financial aid offices for help if needed. If you’re confused or in a bind, give me a holler and I’ll try to help out.

Oh, and don’t let your senior manipulate you in to doing something foolish like increasing his allowance or taking the family van to see Boy Genius in New Jersey…expect her to try though!

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Here’s a few important reminders to parents about paying for college and financial aid (and merit aid):

Within a week or two of getting an acceptance letter you should receive an official financial aid award (that is, if you applied for financial aid by submitting the FAFSA and, where required, the CSS PROFILE). If you haven’t received such an award letter, phone the financial aid office (not the admissions office) and ask them when you can expect to receive it.

Some schools will request that you go through a process called “Verification”. You may have to send them a copy of your taxes and another form or two they’ll direct you to. It’s annoying but not hard, and don’t be bashful about calling the school’s financial aid office and asking for clarification.

Remember, your son/daughter has until April 30 to make his/her final decision (that’s when deposits are due to the school they’re going to attend), but most folks can’t make that decision until they know what it’s going to cost. So you need to get financial aid information ASAP so you’ll know whether it’s going to be necessary to prepare an appeal for more money. Given the lateness of the FAFSA some colleges are even extending their final decision deadline to June 1, but don’t assume that unless you hear specifically from a college. Otherwise stick with April 30.

VERY IMPORTANT POINT FOR THOSE WHO QUALIFY FOR FINANCIAL AID: If you’re not pleased with the aid you’ve been given you can appeal for more. However, you’ve got to be able to make a compelling argument (meaning: you’ve got to need it, not just want it).

Each late winter/spring I work with many families who wish to make an appeal for additional aid. Get in touch with me if you have questions or want help interpreting an award letter, or composing an appeal strategy, There’s a right way and wrong way to ask for additional money. I’ll show you the right way to do it.

For those families who do not qualify for need based aid there is a way to inquire about merit aid from colleges which offer it. Give me a call if you want some suggestions.

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SCHOLARSHIPS:

Whether your family filed for financial aid or not, now is the time to be sending out scholarship applications. There are many sources of funds out there, but (sadly) most won’t give money to you. However making a time-efficient and strategic search and scholarship application blitz may not be a bad idea. Start right in your guidance office and ask about local scholarships – now is the time to be applying for them. If you’re not already registered with www.fastweb.com, sign up now.

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A FINAL POINT:

Remember that the purpose of financial aid is to fill the gap between the full cost of the school (tuition/fees plus room/board) and a family’s ability to pay and (reasonably) borrow (your Expected Family Contribution). Asking the college for more money is NOT, in my opinion, an exercise in merely “getting the best deal”, and this is an important distinction to make if you’re to be successful. If the FAO (financial aid officer) thinks you’re merely “shopping”, you won’t do as well. I tell parents to expect paying for college to hurt a little more than you’re hoping it will, but not a great deal more. If your child gets in, and if the college is a respectable one (and most are), you should have success appealing for more money once you explain your need and your true EFC. The months of March and April, when you’ve heard from all your schools, is the proper time to do this.

On that somber note, relax and enjoy the ever longer days, the NCAA basketball tournament, the impending start of the baseball season, and the wonderful and exciting changes which are in store for you in the coming months!

Stay groovy!

Gary

P.S. If you’ve read this far I suspect you appreciate all this information I’m laying out for you, despite the length. If you know of other students and their parents who would benefit from receiving my rants (particularly members of the class of 2025 and 2026 who are just starting this journey) I would be grateful if you would pass my name and contact information along to folks who may want to receive my future rants.

Thanks.

FAFSA failure leaving families in the lurch

Posted on February 10, 2024 by Craig Meister

The Free Application for Federal Student Aid (FAFSA), which so many college applicants, students, their families depend on in order to acquire much-needed aid for the cost of a college education, has completely failed this admissions cycle after undergoing a botched redesign and relaunch by the US Department of Education.

In response to the announcement that FAFSA applicant information will not be available to colleges until March, the National Association for College Admissions Counseling (NACAC) and other associations are urging colleges to extend their enrollment and financial aid deadlines beyond the traditional May 1 reply-by date.  This is to ensure students and families have time to consider their financial options before making enrollment decisions. In response to the FAFSA delay, NACAC CEO Angel Pérez also issued a statement.

While the U.S. Department of Education announced a FAFSA College Support Strategy to provide additional personnel, funding, resources, and technology to help colleges process student data and deliver financial aid, this doesn’t make things any easier for students and parents waiting for financial aid packages from colleges and universities.

Many estimate most colleges won’t be able to deliver final financial aid packages to students and families until late March at the earliest. Every American college and university traditionally tries to provide financial aid packages as early as possible after a student is admitted in order to entice a student and his or her family to commit to attend and deposit. The failure of the FAFSA this admissions cycle is causing massive headaches and heartburn for college administrators everywhere, but particularly at colleges that harness aid to spur matriculations and maintain enrollment numbers that are the lifeblood of the vast majority of institutions.

While the Department of Education has extended the FAFSA submission deadline to June 30, that really doesn’t help colleges that traditionally need the bulk of committed students to deposit by May 1. Most selective colleges have not extended their financial aid application deadlines anywhere close to June 30, and many high school seniors want to be finished deciding where they plan to go to college by no later than the traditional reply-by date of May 1 so that they can focus prom, the end of senior year, and the joy of high school graduation. The failure of the FAFSA has the potential to cast a pall over all of these typical rights of passage.

While a number of colleges have also extended their financial aid application deadlines and pushed by their commitment deadlines to May 15 or June 1, which is unprecedented, others, like Elon University, are doing their best provide preliminary financial aid packages to students based on data received from the CSS-PROFILE.

Ultimately, with the dream of a simpler FAFSA having turned into a nightmare, the FAFSA breakdown and delays are causing the most pain and suffering to students and parents who desperately want the information they need in order to end their college application processes once and for all and with the peace of mind that they’ve selected the best institutions in alignment with both family goals and family budgets.

Elon University Provides Financial Aid Update Amid FAFSA Turmoil

Posted on February 10, 2024 by Craig Meister

While Free Application for Federal Student Aid (FAFSA) delays have slowed the financial aid awarding process at colleges and universities across the United States, and though FAFSA results are delayed until mid-March, Elon University has begun posting financial aid offers for families who have submitted the CSS Profile.

While the FAFSA determines eligibility for Federal Aid, the CSS Profile allows Elon to determine institutional financial aid eligibility. Elon’s aid offers will be estimated until FAFSA results are received; yet, the estimates will include all aid for which admitted students are eligible. Elon applicants with demonstrated financial need will receive their offer before others, and they may view their award via their Elon OnTrack account.

Ultimately, all aid will be listed as incomplete until the FAFSA results are submitted to Elon by the Department of Education.

Boston College Accepts 28% of Early Decision II Applicants

Posted on February 6, 2024 by Craig Meister

Early Decision II applicants to Boston College will be notified of whether or not they’ve been admitted this evening, Tuesday, February 6, 2024. The news will be delivered through applicants’ Applicant Status Portals, and admitted students living in the United States will also receive paper copies of their admission packets through the US Postal Service.

Boston College reviewed 1,500 Early Decision II applications and anticipates enrolling approximately 415 students from this round. Approximately one quarter of applicants will be deferred to Regular Decision. Given the strong academic profile of BC’s Early Decision applicants this year, the university has extended a slightly larger number of offers during the Early Decision rounds. As of late, Early Decision applicants to Boston College are accepted at roughly twice the rate as Regular Decision applicants.

Total applications to Boston College have remained relatively consistent with last year’s volume. More than 35,000 students have submitted first-year applications, and BC’s admissions committee is currently reviewing 31,000 applications for Regular Decision. Last year BC received a total of 36,537 applications. This year’s Regular Decision notifications will be released in March. BC’s application totals by round for the 2023-2024 admissions cycle, are as follows:

Early Decision I 2,808
Early Decision II 1,493
Regular Decision 31,173
Total 35,474
BC has also announced that its financial aid staff will use the data that families submit via the CSS Profile to provide financial aid awards to those admitted this admissions cycle. While these awards don’t yet include specific funding sources and won’t until BC receives FAFSA data, the award amounts will be accurate. Students and families can confidently use any awards that come with acceptance letters to make their decisions. Once BC receives the data from the FAFSA, which is currently delayed due to U.S. Department of Education incompetence, awards will be updated to note whether the scholarships, loans, and employment opportunities in their awards come from federal, state or BC sources.

8 Ways to Reduce the Cost of College

Posted on February 5, 2024 by Barbara Hartman

Education is an expensive ordeal, and it is only getting worse.

The average cost of college for a single student in the United States is $35,436 per year, including tuition and other expenses. It’s also just a baseline, as the costs grow exponentially if you continue your education beyond an undergraduate program. For example, if you’ve figured out that research is what you are solely interested in and passionate about, getting a doctorate may be a perfect choice, but it requires a huge investment as the Ph.D. cost is really high.

The worst part is that it is getting more expensive each year—for the last decade, it has had an annual growth rate of 2%.

But even as education costs grow, there are ways to reduce their burden. They require some strategy or forethought but can positively impact your expenses.

From simple to complex, here are eight ways to reduce the cost of your education and make your journey toward that degree a breeze.

1. Buy or Rent Used Textbooks

The cost of textbooks changes according to institution and degree, which means some may be more expensive than others. However, the average cost of textbooks for a student in a 4-year program sits at around $1,200 per year.

Expensive? It sure is—even more so, considering you’re probably only going to find them useful for a semester. That is why you should buy used textbooks rather than brand-new ones.

You can find the cheapest textbooks online at BookScouter.com, gaining access to all your required textbooks for over half of their original price. You can search for the best offers from over 30 buyback companies, including popular vendors like Sellbackyourbook, Textbookrush, Booksrun, Ziffit, and others. Given the platform’s popularity, it has accumulated numerous reviews, allowing you to rely on other users’ experiences when selecting a company to sell your books to. For instance, feel free to read Ziffit reviews before selling your books to ensure it’s a credible buyback vendor.

You can also opt to rent instead, reducing the cost even further and allowing you to return the book once the semester ends. Simply enter the ISBN or title of the book and search for the best offer.

2. Look into AP Courses in High School

If you are still studying in high school, consider enrolling in Advanced Placement (AP) classes to save some money on your future college tuition.

If you approve your AP tests with high grades at the end of the school year, some colleges will accept the credits as if you had approved the corresponding introductory college course. As such, you can skip those classes and save the money you would have spent on those credits.

However, keep in mind that this method requires academic excellence and dedication. Likewise, which AP courses are accepted or not varies according to college.

3. Consider Community College as a First Step

Another option to rake in credits ahead of college is to make a first stop in your local community college.

By enrolling for an associate’s degree, you can complete your general classes and acquire those mandatory credits much cheaper, as a community college is often the most affordable option. Once done, you can transfer to four-year universities and only spend money on the remaining courses related to your specific degree.

However, remember that you should check beforehand whether or not your community college has any deal for guaranteed acceptance and make sure the university you aim for accepts such credits.

4. Take Advantage of Student Discounts

Many everyday expenses can rake up fast if you are a college student. Luckily, being a student is not all bad—studying gives you many benefits and discounts you would otherwise not get access to.

Whenever you are purchasing anything, make it a habit to ask about student discounts or benefits. Technology purchases often include student-exclusive discounts for hardware and software necessities, while some restaurants include student plans and meals worth checking out.

While these may not impact your tuition or direct college expenses, student discounts can significantly soften the burden of everyday needs.

5. Study Your Housing Options Carefully

It’s not a secret that there is a housing crisis within the United States, and rent can often be a considerable percentage of every student’s expense. That is why, before starting college, you must evaluate your housing options.

If possible, the best option is always to live at home. It can save you housing costs and thus reduce your overall expenditure. This is viable if you go to community college first or if your university is nearby, and commuting is often worthwhile.

When staying at home is not an option, compare and contrast the benefits of living in a dorm or staying off-campus. While staying off-campus is often cheaper, aspects such as rent, utilities, and transportation are all worth studying before determining the best deal.

6. Avoid Using a Car

A vehicle can be expensive, and car ownership can quickly increase for college students.

Between gas, maintenance, insurance, parking, and other miscellaneous costs, having a car can easily be a few grand, which is a lot for a college student concerned about other payments.

Of course, sometimes, it’s an inevitable expense. But if your circumstances and campus situation allow it, consider relying on public transportation for as long as possible and reduce your car expenses until it becomes mandatory.

7. Research Tuition Reimbursement Programs

According to their policies, some businesses or companies offer tuition assistance, paying a percentage of credits towards a certain degree. However, a significant portion of eligible employees need to be made aware of this benefit. As such, if you are employed, always research whether or not you could enjoy this assistance.

If you would like to enjoy this benefit and consider it worth trying, you can apply for part-time jobs in some companies offering programs and research. UPS, Bank of America, Chipotle, and other options worth considering.

8. Apply for Scholarships and Financial Aid Programs

Left for last is the most obvious option, but the most efficient of them all: scholarships.

The most obvious and efficient option, which is often overlooked, is applying for scholarships. However, this should always allow everyone to apply to as many scholarships or financial aid programs as possible.

There are many options worth exploring. From complete financial aid programs to textbook scholarships, any of these programs can significantly impact your college expenses, so it’s a door worth knocking on.

Conclusion: Be Savvy and Resourceful

There is no denying that college expenses are burdensome and costly. However, the tips and tricks in this article can ease some of that weight on your shoulders. The secret lies, as always, in remaining cautious and thoughtful.

If you have a savvy mind, a proactive disposition, and a knack for budgeting, you can surf through college with fewer expenses than expected. It’s not a solution, but it is a help.

Fundamentals of Financial Aid for 2024

Posted on September 26, 2023 by Craig Meister

If one sentence could sum up the state of financing an American college education in 2024 it would be, “The more things change the more things stay the same.”

While change is afoot, much remains the same. Changes are particularly pronounced with the Free Application for Federal Student Aid (FAFSA); yet, with the American economy and many other world economies faltering, it’s important to discuss not only what’s new but also what remains constant with regard to applying for and seeking aid and other sources of financing to fund study at American colleges because more and more American and international families find paying for college difficult.

Let’s dive into some definitions and discuss fundamental financial aid terminology while introducing what’s new this aid cycle and what remains the same so you can successfully navigate the process of funding an American undergraduate education as we approach 2024.

Need-Based Financial Aid
Need-based financial aid is awarded to students based on their demonstrated financial need, which is calculated through the Free Application for Federal Student Aid (FAFSA) or other financial aid applications (most notably, the CSS PROFILE, which is discussed below). Students with significant financial need may receive need-based aid in the form of grants, scholarships, work-study programs, and subsidized loans. Grants and scholarships do not need to be repaid, making them a form of “gift aid.” Need-based financial aid is designed to assist students who may not have the financial resources to afford the cost of college. It aims to make higher education accessible to those with limited means.

Merit-Based Financial Aid
Merit-based financial aid is awarded to students based on their individual achievements, abilities, and qualifications, often without regard to their financial need. Common criteria for merit-based aid include academic performance, standardized test scores, leadership, extracurricular involvement, talent, and special skills. Merit-based aid typically does not consider the student’s or their family’s financial situation when making awards. Instead, it focuses on recognizing and rewarding academic or other accomplishments. Merit-based aid is often provided in the form of scholarships and grants. These awards recognize and incentivize excellence in academics, sports, arts, or other areas. Unlike need-based aid, merit-based aid is a recognition of achievement and does not depend on the recipient’s financial circumstances. Merit-based financial aid is intended to attract and reward high-achieving students, whether academically, athletically, or in other areas. It is used by colleges and universities to recruit talented and accomplished students to their institutions.

Free Application for Federal Student Aid (FAFSA)
The Free Application for Federal Student Aid (FAFSA) is a form that students in the United States can fill out to apply for federal financial aid for college. The FAFSA is used by the U.S. Department of Education to determine a student’s eligibility for various types of financial aid, including grants, scholarships, work-study programs, and federal student loans. The information provided on the FAFSA, such as the student’s family’s income and assets, has traditionally been used to calculate what was known as the Expected Family Contribution (EFC). The EFC was measure of the student’s family’s ability to contribute to their education expenses, and it plays a crucial role in determining the amount of federal financial aid a student may receive. Yet, starting this year, the Student Aid Index (SAI) will replace the Expected Family Contribution (EFC). The SAI is a new metric to understand the relative amount that the formula estimates a student can contribute and will help clarify how much federal aid and institutional aid a student might qualify for.

As mentioned, colleges also use the FAFSA information to determine eligibility for their own institutional aid programs. It’s important for students interested in receiving aid to complete the FAFSA as early as possible each year because some forms of financial aid are awarded on a first-come, first-served basis. The FAFSA typically becomes available on October 1 for the following academic year, but this year the form is not going live until December 1 because of changes that the US Federal Government has been unable to complete on schedule.

The new FAFSA will be able to sync with data from the Internal Revenue Service to automatically populate that tax information in the forms. There will also be fewer questions for families to complete on the new FAFSA. There are different deadlines for submission that vary by state and college. To complete the FAFSA, students and their families need to provide financial and personal information, including tax returns and other financial documents.

Also worth noting is that “Contributor” is a new term being introduced on the 2024–25 FAFSA form. A contributor is anyone who is required to provide their information and signature on the FAFSA form as well as provide consent and approval to have their federal tax information transferred from the IRS directly into the form via direct data exchange. Contributor participation does not indicate financial responsibility, but everyone contributing to the FAFSA form online must have their own StudentAid.gov account. One can create an account at StudentAid.gov/fsa-id/create-account. All students and contributors will need their own StudentAid.gov account before filling out the FAFSA form. Students and families should create their accounts as soon as possible, and beginning in December 2023, a contributor can create a StudentAid.gov account without a Social Security number. Students and contributors must provide consent and approval to have their federal tax information transferred from the IRS directly into the form via data exchange. Student and contributor federal tax information will be used to determine the student’s eligibility for federal student aid, and if a student or required contributor doesn’t provide consent and approval, the student will not be eligible for federal student aid even if he or she manually enters tax information into the FAFSA form. In summary, a contributor is anyone who is required to provide information on a student’s FAFSA form, including the student, the student’s spouse, a biological or adoptive parent, or the parent’s spouse (stepparent). A contributor isn’t non-adoptive grandparents, foster parents, legal guardians, brothers or sisters, and aunts or uncles, even if they helped provide for or raise the student.

Students should go to fafsa.gov to fill out their FAFSA form in December 2023.  Students can contact the Federal Student Aid Information Center at 1-800-433-3243 if they need additional assistance. Note that it’s important to meet all school, state, and federal FAFSA deadlines. More information about deadlines can be found at StudentAid.gov/fafsa-deadlines. It’s also very important to remember your StudentAid.gov account username and password (FSA ID), which will be used to log in to complete the FAFSA form.

Another new element to the FAFSA this year: students will be able to include up to 20 colleges on the online FAFSA form, which is double the maximum of 10 allowed in previous years.

Federal Methodology (FM)
The Federal Methodology (FM) is a formula used in the United States to determine a student’s financial need for federal student aid when they complete the Free Application for Federal Student Aid (FAFSA). The FM calculates the Student Aid Index (SAI), which represents the amount of money that a student and their family are expected to contribute toward their education expenses for a specific academic year.

Here are some key points about the Federal Methodology (FM) and how it works:

  1. Income and Asset Information: The FM takes into account various financial factors, including the student’s and parents’ income and assets. This information is reported on the FAFSA.
  2. Student Aid Index (SAI) Calculation: The SAI is calculated based on a standardized formula established by the federal government. The formula considers factors such as adjusted gross income, untaxed income, and family size. It should be noted that while the EFC also factored in how many other college students were in a family, the new SAI does not do this. According to NerdWallet, the “SAI is used as part of the equation for financial need, which is found by subtracting the Student Aid Index and other financial assistance from the cost of attendance at each school. Your cost of attendance includes tuition, fees and room and board. The equation essentially looks like this: Cost of attendance – SAI – Other Financial Assistance (OFA) = Financial Need.”
  3. Need-Based Aid: The SAI is used to determine a student’s eligibility for need-based federal financial aid programs, such as the Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), and subsidized student loans. The formula subtracts the SAI from the cost of attendance (COA) at the student’s chosen college to determine the student’s financial need.
  4. Cost of Attendance (COA): The COA includes tuition, fees, books, supplies, room and board, transportation, and other educational expenses. It is an estimate of the total cost of attending a particular college for one academic year.
  5. Non-Need-Based Aid: Some federal financial aid programs, such as unsubsidized federal student loans and the Federal Work-Study program, are not need-based and do not rely on the SAI for eligibility. Students can generally borrow unsubsidized loans regardless of their SAI, though loan amounts may be capped based on dependency status and academic year.
  6. State and Institutional Aid: States and colleges may use their own formulas or methodologies to award state and institutional financial aid. However, the SAI calculated using the FM on the FAFSA is often used as a starting point for determining eligibility for these programs.
  7. How low can SAI go?: Interestingly, a student’s SAI can be a negative number down as low as -1,500.
  8. Other changes this year: Child support received will now count as an asset. Family farms and small businesses will now count as assets, less the family’s primary residence if also located on the farm. Finally, the number of family members in college is no longer considered in the needs analysis formula, but it is still a required question on the FAFSA form.

Overall, the Federal Methodology is a standardized way to assess a student’s eligibility for federal need-based financial aid programs, and it plays a central role in the financial aid application process in the United States.

CSS PROFILE
The CSS PROFILE (long version: College Scholarship Service PROFILE) is an additional financial aid application used by many private colleges and universities in the United States to assess a student’s eligibility for non-federal financial aid, including institutional grants, scholarships, and other forms of need-based and merit-based financial assistance. It is administered by the College Board, the same organization responsible for standardized tests like the SAT.

Here are some key points about the CSS PROFILE:

  1. Scope: The CSS PROFILE is typically required by private colleges and universities, primarily those that have substantial institutional financial aid programs. Public colleges and universities generally do not use the CSS PROFILE; they typically rely on the Free Application for Federal Student Aid (FAFSA) for determining federal financial aid eligibility.
  2. Timing: The CSS PROFILE becomes available in the fall, typically around October 1st, for the upcoming academic year. Deadlines for submission vary by college, and it’s essential for students to check each college’s specific deadline.
  3. Customized Questions: Unlike the FAFSA, which uses a standardized formula (the Federal Methodology), the CSS PROFILE allows colleges to customize the financial information they collect from applicants. This means that the questions and data requested may vary from one institution to another.
  4. Non-Custodial Parent Information: Some colleges that require the CSS PROFILE may also request financial information from a non-custodial parent, especially in cases where the student’s parents are divorced or separated.
  5. Fee: There is a fee associated with submitting the CSS PROFILE, and fee waivers may be available for eligible students. The fee can vary depending on the number of colleges or programs to which the student is sending the PROFILE.
  6. Documentation: Applicants may need to provide documentation, such as tax returns, W-2 forms, and other financial records, to support the information provided on the CSS PROFILE.
  7. Institutional Aid: The CSS PROFILE is primarily used to determine eligibility for institutional (college-specific) financial aid. Colleges may use the information provided on the PROFILE to make decisions about need-based grants and scholarships, as well as other forms of financial assistance.
  8. Supplemental Information: Some colleges may also use the CSS PROFILE to collect additional information about special circumstances or unusual expenses that could affect a student’s financial need.

It’s important for prospective college students to research the financial aid requirements of the colleges they plan to apply to, as not all schools require the CSS PROFILE. Some colleges may also have their own financial aid applications in addition to or instead of the CSS PROFILE. Students should be aware of deadlines and application requirements to ensure they are considered for all available financial aid opportunities at their chosen institutions.

Institutional Methodology
The Institutional Methodology (IM) is a financial aid calculation formula used by some colleges and universities in the United States to determine a student’s eligibility for institutional (college-specific) financial aid programs. Unlike the Federal Methodology (FM), which is used to calculate eligibility for federal financial aid, the IM is specific to the institution itself (often created with the help of data collected in the CSS PROFILE) and is used to distribute the college’s own financial aid funds.

Here are some key points about the Institutional Methodology (IM):

  1. College-Specific Formula: Each college or university that uses the IM may have its own unique formula or set of criteria for calculating a student’s financial need. This means that the IM can vary from one institution to another, and the way financial need is determined may differ.
  2. Additional Information: In addition to the information provided on the Free Application for Federal Student Aid (FAFSA), colleges using the IM may request additional financial information from the student and their family. This can include details about assets, expenses, and other factors that may be relevant to determining financial need.
  3. Institutional Aid Programs: The results of the IM calculation are typically used by the college to award its own institutional financial aid, such as scholarships, grants, and work-study opportunities. These awards are often based on factors like academic merit, athletic talent, or other criteria set by the college.
  4. Variable Award Amounts: Because the IM can vary from one institution to another, the amount of institutional aid a student is eligible for can also vary significantly depending on the college they attend. Different colleges may have different resources available for financial aid, and they may prioritize certain types of students or circumstances.
  5. Transparency: Colleges that use the IM are generally required to disclose their financial aid policies and methodologies to prospective students. This allows students and their families to understand how their financial need will be determined and how much institutional aid they may qualify for.

It’s important for students and their families to carefully review the financial aid policies and requirements of each college they are considering applying to, as these policies can have a significant impact on the affordability of attending a particular institution. Some colleges may use only the federal FM to determine financial need, while others may use both the FM and their own IM, or they may rely solely on the IM.

Pell Grants
Pell Grants are need-based federal financial aid awards provided to eligible undergraduate students in the United States to help them pay for their college education. These grants are administered by the U.S. Department of Education and are a crucial source of financial assistance for many low-income and some middle-income students pursuing higher education.

Here are some key features of Pell Grants:

  1. Need-Based Aid: Pell Grants are awarded based on financial need, as determined by the Student Aid Index (SAI) calculated from the student’s Free Application for Federal Student Aid (FAFSA).
  2. Eligibility Criteria: Eligibility for Pell Grants is primarily determined by factors such as the student’s SAI, enrollment status (full-time or part-time), the cost of attendance at their chosen college, and their plans to attend college for a full academic year or less. Students must also meet certain citizenship and educational requirements.
  3. Award Amounts: The maximum Pell Grant award amount is set annually by the U.S. Congress. The actual amount a student receives depends on their financial need, as well as the cost of attending their college. Students with higher financial need may receive a larger Pell Grant.
  4. Annual Limits: Pell Grants have an annual limit, and students can receive these grants for a maximum of 12 semesters (or the equivalent). The number of semesters a student can receive a Pell Grant depends on factors such as enrollment status and the number of semesters they attend college each year.
  5. Non-Repayable: Pell Grants are considered gift aid, which means they do not have to be repaid by the student. This makes them a valuable source of financial assistance, as they reduce the student’s out-of-pocket expenses for tuition, fees, books, and other educational costs.
  6. Application: To be considered for a Pell Grant, students must complete the FAFSA (Free Application for Federal Student Aid). The FAFSA is used to determine eligibility not only for Pell Grants but also for other federal, state, and institutional financial aid programs.
  7. Additional Aid: Pell Grants are often part of a student’s overall financial aid package, which may include other forms of aid such as scholarships, work-study opportunities, and federal student loans.

Pell Grants are intended to help make higher education more accessible to students with financial need, allowing them to pursue their educational goals without the burden of significant debt. The specific award amounts and eligibility criteria can change from year to year, so it’s important for students to stay informed about the latest information regarding Pell Grants and other financial aid opportunities. With the new FAFSA, Pell Grant eligiblity is expanding to more students.

Other Tuition Grants
Pell Grants are just one type of grant. A tuition grant is a form of financial aid provided by a college, university, or other educational institution to help offset the cost of tuition for students. Tuition grants are a type of financial assistance that does not need to be repaid, making them a valuable resource for students seeking to make higher education more affordable.

Here are some key points to understand about tuition grants:

  1. Source: Tuition grants are typically offered and funded directly by the educational institution itself. Some colleges and universities have their own grant programs to provide financial assistance to students, while others may receive funding from external sources, such as private donors or foundations, to offer grants to eligible students.
  2. Eligibility: Eligibility criteria for tuition grants can vary widely from one institution to another. Common factors considered may include financial need, academic merit, specific talents or skills, demographic characteristics, or a combination of these factors.
  3. Financial Need: Some tuition grants are need-based, meaning they are awarded to students who demonstrate financial need based on the institution’s assessment of their family’s financial resources. These grants are often intended to make education more accessible to students from low-income backgrounds.
  4. Merit-Based: Other tuition grants are merit-based, awarded to students who have achieved outstanding academic, athletic, artistic, or other accomplishments. Merit-based grants are often used to attract talented and high-achieving students to the institution.
  5. Specific Programs: In some cases, institutions offer tuition grants for students pursuing specific programs or fields of study. For example, a college may offer grants to students majoring in STEM (science, technology, engineering, and mathematics) disciplines to encourage enrollment in these fields.
  6. Application Process: To be considered for a tuition grant, students typically need to complete the institution’s financial aid application or scholarship application. This may include providing information about their academic achievements, extracurricular involvement, financial circumstances, or other relevant factors.
  7. Award Amounts: The amount of a tuition grant can vary widely. Some grants may cover a significant portion of tuition expenses, while others may be smaller and provide partial assistance.
  8. Renewability: Some tuition grants are renewable for multiple years, provided that the student continues to meet specific criteria, such as maintaining a certain GPA or making satisfactory academic progress.
  9. Impact on Financial Aid Package: Students should be aware that receiving a tuition grant may affect their overall financial aid package, including other forms of financial aid such as federal or state grants, work-study opportunities, and loans.

Tuition grants are an important tool that colleges and universities use to make education more accessible and to attract and retain talented students. Students interested in tuition grants should research the specific grant opportunities offered by the institutions they are considering and follow the application procedures and deadlines provided by those institutions.

Subsidized Student Loans
Subsidized student loans are a type of federal student loan available to undergraduate students in the United States with demonstrated financial need. These loans are known as “subsidized” because the federal government pays the interest that accrues on the loan while the borrower is in school and during certain other periods of deferment.

Here are some key features of subsidized student loans:

  1. Financial Need: To qualify for a subsidized student loan, students must demonstrate financial need through the Free Application for Federal Student Aid (FAFSA).
  2. Interest Subsidy: The unique feature of subsidized loans is that the federal government pays the interest that accrues on the loan while the borrower is enrolled at least half-time in college, during the six-month grace period after leaving school, and during deferment periods (such as if the borrower returns to school or experiences economic hardship). This interest subsidy means that the loan balance does not grow while the borrower is in school or during eligible deferment periods.
  3. Loan Limits: Subsidized student loans have annual and aggregate (lifetime) loan limits. These limits depend on the student’s year in school (e.g., freshman, sophomore) and whether they are considered a dependent or independent student. The limits can change annually based on federal regulations.
  4. Repayment: Repayment of subsidized loans typically begins six months after the borrower graduates, leaves school, or drops below half-time enrollment. During the in-school and grace periods, as well as during deferment, the borrower is not required to make interest payments, and the interest that accrues is paid by the federal government.
  5. Fixed Interest Rate: Subsidized loans have a fixed interest rate set by Congress. The rate may change annually for new loans, but once a loan is disbursed, the interest rate remains fixed for the life of the loan.
  6. Loan Forgiveness: Subsidized loans are eligible for various federal loan forgiveness and income-driven repayment programs that can help borrowers manage their loan debt if they qualify based on their income and employment status.

Subsidized student loans are considered one of the more favorable options for financing a college education because of the interest subsidy, which reduces the overall cost of borrowing. However, eligibility for subsidized loans is based on financial need, and there are annual and lifetime limits on the amount a student can borrow. It’s important for students to be aware of their borrowing limits, understand the terms of their loans, and explore other forms of financial aid (such as grants and scholarships) before taking out loans to pay for college expenses.

Unsubsidized Student Loans
Unsubsidized student loans are a type of federal student loan available to both undergraduate and graduate students in the United States. Unlike subsidized loans, unsubsidized loans are not based on financial need, and interest begins accruing on these loans as soon as they are disbursed.

Here are some key features of unsubsidized student loans:

  1. No Financial Need Requirement: Unlike subsidized loans, which are need-based, unsubsidized loans are available to all eligible students regardless of their financial need. This means that students do not have to demonstrate financial need to qualify for these loans.
  2. Interest Accrual: The major distinction of unsubsidized loans is that interest begins accruing on the loan from the moment it is disbursed to the borrower. This is in contrast to subsidized loans, where the federal government pays the interest while the borrower is in school and during certain other deferment periods.
  3. Interest Capitalization: While borrowers are not required to make interest payments while they are in school, during their grace period, or during certain deferment periods, the accruing interest is capitalized or added to the loan’s principal balance when repayment begins. This means that the borrower ends up paying interest on the interest that has accrued.
  4. Loan Limits: Unsubsidized loans have annual and aggregate (lifetime) loan limits that vary depending on the student’s year in school and whether they are a dependent or independent student. These limits are set by federal regulations and can change over time.
  5. Fixed Interest Rate: Unsubsidized loans have a fixed interest rate set by Congress. While the rate may change for new loans each year, once a loan is disbursed, the interest rate remains fixed for the life of the loan.
  6. Repayment: Repayment of unsubsidized loans typically begins six months after the borrower graduates, leaves school, or drops below half-time enrollment. Borrowers are responsible for repaying both the principal amount borrowed and the accrued interest.
  7. Loan Forgiveness and Repayment Plans: Unsubsidized loans are eligible for various federal loan forgiveness programs and income-driven repayment plans. These programs can help borrowers manage their loan debt based on their income and employment status.

It’s important for students to be aware of the terms and conditions of their unsubsidized loans, including the interest that will accrue over time. While these loans provide important access to funding for education, borrowers should consider their overall financial situation and explore other sources of financial aid, such as grants and scholarships, before taking out loans to pay for college expenses.

Private Student Loans
Private student loans, or alternative student loans, are educational loans offered by private financial institutions such as banks, credit unions, and online lenders to help students and their families cover the cost of higher education. These loans are distinct from federal student loans, which are offered by the U.S. Department of Education.

Here are some key features of private college loans:

  1. Lender Variety: Private college loans can be obtained from a variety of private financial institutions. This includes banks, credit unions, online lenders, and some state-based lending programs. Each lender may have its own terms and conditions, interest rates, and eligibility criteria.
  2. Credit-Based: Private student loans are typically credit-based, which means that the borrower’s creditworthiness plays a significant role in the approval process. A good credit history may lead to lower interest rates, while those with limited credit or poor credit may require a co-signer to qualify.
  3. Interest Rates: The interest rates on private college loans can be variable or fixed, depending on the lender and loan product. Variable rates can change over time, potentially leading to higher or lower monthly payments, while fixed rates remain constant for the life of the loan.
  4. Loan Limits: Private college loans may have higher borrowing limits compared to federal student loans, allowing students to borrow more to cover their educational expenses. However, borrowers should exercise caution when taking on excessive debt.
  5. Loan Terms: Private loan terms vary but are often less flexible than federal loans. Borrowers may have fewer options for repayment plans and may not be eligible for federal loan forgiveness or income-driven repayment programs.
  6. Cosigners: Many private lenders require a creditworthy cosigner, especially for undergraduate students and borrowers with limited credit history. A cosigner is legally responsible for the loan if the primary borrower cannot make payments.
  7. Application Process: Applying for private college loans typically involves submitting an application to the lender, providing financial information, and consenting to a credit check. The approval process can vary in length.
  8. Use of Funds: Private loans can be used to cover a wide range of educational expenses, including tuition, fees, room and board, textbooks, and other related costs.
  9. Less Generous Repayment Options: Private loans often have less generous repayment terms than federal loans. Borrowers may need to start making payments while still in school, and they may not have access to income-driven repayment plans or loan forgiveness options.
  10. Interest Capitalization: Some private loans may capitalize interest during periods of deferment or forbearance, adding accrued interest to the loan balance.

Private college loans can be a valuable resource for students who have exhausted federal loan options or have specific needs not met by federal aid programs. Yet, it’s essential for borrowers to carefully compare private loan terms, interest rates, and repayment options before taking out these loans, as they may not offer the same protections and benefits as federal student loans.

Third Party Scholarships
Third-party college scholarships are financial awards given to students by organizations, institutions, companies, or individuals other than the college or university the student plans to attend. These scholarships are typically offered to help students cover the costs of their education, including tuition, fees, books, and living expenses. Here are some key points to understand about third-party college scholarships:

  1. Source of Funding: Third-party scholarships can come from a variety of sources, including private foundations, nonprofit organizations, corporations, community groups, and even individuals who want to support students’ educational goals.
  2. Selection Criteria: Scholarships often have specific eligibility criteria, such as academic achievement, leadership qualities, community involvement, or specific career goals. Some scholarships may also be based on financial need.
  3. Application Process: To apply for third-party scholarships, students typically need to complete an application that includes personal information, academic records, essays, letters of recommendation, and other required documents. Some scholarships may require interviews or additional steps.
  4. Competition: Many scholarships are highly competitive, as they attract applicants from a wide pool of students. It’s important for students to carefully review the requirements and tailor their applications to stand out.
  5. Award Amounts: The amount of money awarded through third-party scholarships can vary widely. Some scholarships may cover a significant portion of a student’s expenses, while others may provide smaller awards.
  6. Use of Funds: Scholarship funds are typically intended to be used for educational expenses, such as tuition, fees, books, and living costs. Some scholarships may have restrictions on how the money can be used.
  7. Renewability: Some scholarships are one-time awards, while others are renewable for multiple years as long as the recipient continues to meet the specified criteria.
  8. Deadline: Each scholarship will have its own application deadline, which may vary depending on the organization offering the scholarship. It’s important for students to pay attention to these deadlines to ensure they don’t miss out on opportunities.
  9. Impact on Financial Aid: It’s important for students to inform their college or university’s financial aid office if they receive a third-party scholarship, as it can affect the overall financial aid package. In some cases, the college may adjust other forms of financial aid to avoid over-awarding.
  10. Search Resources: Students can search for third-party scholarships through various resources, including scholarship search websites, their high school guidance counselor, college financial aid offices, and community organizations.

Overall, third-party college scholarships can be a valuable source of financial support for students pursuing higher education, as they can help alleviate the financial burden of attending college and make education more accessible to a wider range of students. Yet, the amount of time and energy needed to apply for and ultimately secure such scholarships may not be worth it relative to the often larger pots of money students can access elsewhere through other sources of aid.

Need-Blind vs. Need-Aware
“Need-aware” and “need-blind” are terms used in the college admissions process to describe how an institution considers a student’s financial need when making admission decisions. These policies can have a significant impact on a student’s chances of being admitted and the level of financial aid they may receive.

Here’s what each term means:

  1. Need-Aware Admissions:
    • Definition: Under a need-aware admission policy, the college or university takes into consideration a student’s financial need when making admission decisions. In other words, the institution is aware of the applicant’s financial situation and may consider their ability to pay tuition and related expenses as a factor in the admissions process.
    • Impact: Need-aware institutions may admit some students without considering their financial need, especially those who are exceptionally qualified or meet other specific criteria. However, when it comes to students whose qualifications are on the borderline or are not as strong, financial need can play a role in the decision-making process. In some cases, this means that students with high financial need may have a more challenging time gaining admission, particularly if the institution has limited financial aid resources.
  2. Need-Blind Admissions:
    • Definition: Under a need-blind admission policy, the college or university does not take an applicant’s financial need into account when making admission decisions. The institution makes admission decisions solely based on the applicant’s academic achievements, extracurricular activities, recommendations, essays, and other non-financial factors.
    • Impact: Need-blind institutions admit students without regard to their financial circumstances. This policy often means that the admissions process is more focused on the student’s qualifications and potential contributions to the academic community. Once a student is admitted, the institution commits to meeting their demonstrated financial need through a combination of grants, scholarships, work-study programs, and loans.

It’s important to note that not all colleges and universities have a strict need-aware or need-blind policy. Some institutions may adopt a hybrid approach, where they are need-blind for domestic applicants but need-aware for international applicants, or vice versa. Additionally, an institution’s financial resources and endowment can play a role in whether they can afford to be need-blind in their admissions process. Students and their families should research the specific admission and financial aid policies of the colleges they are interested in to understand how these policies may affect their chances of admission and the level of financial aid they can expect to receive if admitted.

So, What About Aid Available At Colleges On My List?
As you could probably tell by reading up to this point, the types and amount of aid students can expect varies a great deal based on both the student and the colleges the student is applying to. While no article can become fully personalized to tens of thousands of readers’ unique economic and demographic backgrounds, there are only so many colleges out there, which makes honing in on and better understanding individual college aid statistics so valuable. My favorite sources of such powerful financial aid data are Jennie Kent and Jeff Levy who publish amazing Domestic Undergraduate Need-Based Aid and Merit Aid Stats and Financial Aid for Nonresident Alien Undergraduates Stats each year. Otherwise, it can’t be emphasized often enough, if you have any questions about how a particular college on your list administers or handles financial aid, I strongly encourage you to call or email that college’s financial aid office; nearly all colleges have financial aid officers working Monday through Friday whose job it is to answer prospective and current families’ questions. Take advantage of these expert sources of information at the colleges on your (or your student’s) list so you are able to navigate the the college and financial aid application processes with eyes wide open. Good luck!

Additional Federal Resources
StudentAid.gov
Information, resources, and guidance for students, contributors, and borrowers

Financial Aid Toolkit
Find outreach tools to help guide others through changes to the FAFSA process

FAFSA® Changes: An Overview
A webinar that discusses contributors, the StudentAid.gov account requirement, and providing consent and approval to transfer federal tax information from the IRS via direct data exchange.

2024 –25 FAFSA Preview Presentation
An overview designed to help you understand the 2024-2025 FAFSA form and prepare for FAFSA outreach and events. This presentation includes detailed screenshots of the 2024 –2025 FAFSA online form and new user experience.

YouTube.com/@FederalStudentAid
Review the FAFSA video playlists that will be posted the FAFSA’s YouTube channel, which are helpful resources for students and families.

Fastweb Shares Earth Day Scholarships

Posted on April 18, 2023 by admissions.blog

Are you or your student looking for opportunities that will help the environment and can help pay for college? Fastweb has compiled a new Earth Day scholarship list with opportunities that focus on the environment and how to make an impact.

In addition, Fastweb has recently shared environment-focused internships and ways to live a more environmentally-conscious life.

Fastweb provides information and resources for students who are searching for scholarships, internships, and other educational opportunities. The website launched in 1995 and has since become one of the most popular scholarship search engines for high school students planning for college. The site allows students to create a profile, which is used to match them with relevant scholarship opportunities based on their academic background, interests, and other criteria.

Want to Fix Financial Aid?

Posted on July 1, 2022 by Patrick O'Connor Leave a Comment

A previous post this year offered a couple of suggestions on how we can fix financial aid.  If you missed that post, a quick summary:

  • College costs too much;
  • Most people don’t know how to pay for it;
  • Financial aid forms are too lengthy;
  • The reports describing what aid a student gets are too confusing;
  • Everyone hates loans.

I was really hoping the two suggestions I made might generate some thoughtful discussion about how to make college more affordable, and lead us to a point where we were ready to take on changes to financial aid the way the profession is taking on changes in required testing.  Instead, I got crickets.

Undeterred, I’m back with another approach—and this one even sounds like fun.  I haven’t been to many conferences in the last few years, and what I’ve really missed is the conversations at the end of the day where most sentences begin with “Wouldn’t it be great if…?” Those conversations have led to all kinds of changes in the way I counsel students, and they inspire all of us to keep looking for ways to expand access and opportunity.  Without these conversations, work can be a little less inspiring, especially when students who heard Yes from the dream school come in with the financial aid report, and remember why that was a dream school.

So how about this?  What if we go to the people who run financial aid offices, and ask them how they would improve financial aid?  This happens all the time in the business world; the way to improve the delivery of a service is to ask the people delivering the service.

Since we’re talking about serious money here, this needs to be something a little more casual than just a conversation over a couple of beers, so let’s put together some guidelines:

Financial aid folks, identify what you would change about the world of financial aid, and why.  It can be one thing; it could be myriad things.  I have a bias towards access, so I’d likely be more interested in the parts of financial aid that keep kids from coming to college, staying in college, or making the most in college.

Give me some data.  Some of the best ideas are those that come from the gut, but in this case, those ideas relate to money, and that involves recordkeeping.  Show me how this affects kids.

Tell me what you ‘d do to fix this problem, and why you think this would solve the problem.  As is typically the case here, this needs to be the right mix of practical and blue sky, where we blow up enough of the current system without tossing out the parts that work.  “Let’s start over” may sound exciting, but it isn’t a plan.  I’m looking for something that’s partly a plan with wings, and partly a dream with legs.

Tell me how you know if you fixed the problem—what data points will change, what procedures will be updated, what students will worship the ground you walk on as a result of these changes?

Tell me what could go wrong—why it might not work, why it might work but just for your school, and what unintended consequences might arise.  In some cases, the answer here might be “beats me’, but even that answer can be explained in detail.  “There aren’t any” isn’t an answer—it just means you haven’t thought about it much.

What will you get if you send me this information and I like the idea?  Well, my plan would be to pick the best three ideas, and give each of them $300,000—100 grand a year for three years—to implement the plan.  You’ll need to include a budget to show what you’d do with the money—and using it for financial aid itself is OK—and you’ll need to track the money to make sure you can show what it actually went to.  But show me you’ve got a plan that’s part pipe dream, and you may get the chance to make it come true.

Now.  About the money.

I don’t exactly have a million dollars lying around, and something tells me there might not be a lot of foundations willing to give me the money if I go to them and simply say “How about if we try and fix financial aid?” I do think they might provide some funding for innovative ideas made by experienced financial aid professionals who work at the grass roots.  That’s why we need to start with your proposals—if I go to them with real plans, they’re much mor likely to sign on. So you may get nothing, other than a chance to step back, re-picture the big picture, and think about your work in a different way. But you may get more.

If that’s of interest to you, I’m at collegeisyours.com

Let’s see where this goes.

It’s about to pay a little more to be poor at Colby

Posted on February 13, 2022 by admissions.blog Leave a Comment

Colby College has announced the creation of the Weiland Welcome Grant through which incoming first-year students in the Class of 2026 and later with an expected parent or guardian contribution of $0 will receive $1,250 in free money in addition to financial aid to address unexpected expenses such as technology needs, course materials, or travel home.

Colby’s generosity to those of relatively modest financial means is being made possible by a three million dollar gift from Trustee Emerita Nancy Weiland ’65 and Andrew Weiland ’64.  The newly created endowed fund is an extension of the Colby Commitment, which ensures the most talented students from all backgrounds have access to the best possible education.

Recent changes at Colby have opened doors for more students from all backgrounds to attend the Waterville, Maine liberal arts college, none more so than an increase in the financial aid from twenty-eight million dollars in 2014 to fifty-two million dollars in 2021. Colby is also among a small group of colleges that meets 100 percent of demonstrated need without student loans. Among first-year students in the Class of 2025, eleven percent are projected to be the first in their families to graduate from college, and more than 100 are Pell Grant recipients, triple the number of students receiving Pell Grants from only several of years ago, said Randi L. Arsenault ’09, Colby’s dean of admissions and assistant vice president of admissions and financial aid.

In unrelated, but somewhat ironic news, Colby has also recently announced that it has acquired two private islands in the Gulf of Maine where renowned American artist Andrew Wyeth painted some of his greatest works.

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